Majority of Air France pilots back low-cost unit deal

Reuters

Published Dec 03, 2014 08:33AM ET

Majority of Air France pilots back low-cost unit deal

PARIS (Reuters) - A majority of Air France (PA:AIRF) pilots backed a deal reached in September to develop the company's low-cost operations in France, the airline said on Wednesday.

Some 53 percent of Air France pilots approved the agreement, reaching 60 percent for members of the majority union SNPL, Air France said in a statement.

The agreement followed a two-week strike that had cost the airline over 280 million euros as pilots forced Air France's Franco-Dutch parent Air France-KLM (PA:AIRF) to ditch plans to expand its low-cost brand, Transavia, in Europe, fearing that the project would erode their own pay and conditions.

The dispute highlighted discrepancies in wages, labor conditions and welfare coverage between European countries which are theoretically part of a single market for goods and services, but in fact compete with each other for jobs.

To date, more than 200 Air France pilots have volunteered to fill the 72 positions available at Transavia France, it said.

Under the deal these pilots would retain their Air France contracts but sign with Transavia France a "detachment" contract setting pay and holiday terms during their time at Transavia.

Air France has said it wanted to speed up the development of Transavia, which it believes is vital for the well-being of the company at a time when myriad low-cost airlines are taking root across Europe.